Regional hospitality industry still well placed, says The Hotel Show organisers

Even with revenue and room rates falling, hotels in the Middle East are faring better than the rest of the world in the global downturn and rank higher when compared with Europe, Asia-Pacific and the Americas, according to a Deloitte analysis of STR Global data.

“It has undoubtedly been a tough time for the hospitality industry on a worldwide basis in 2009 and the Middle East has not escaped totally unscathed,” said Maggie Moore, Exhibition Director of The Hotel Show. “But set against global trends, the region is still comfortably placed when compared with the rest of the world.”

The Hotel Show (May 18-20, 2010) is a dedicated trade event for the hospitality and leisure sector and next takes place at the Dubai International Exhibition and Convention Centre.

“While the number of hotel projects under construction in the Middle East has slowed down, as regional economies react to the challenges of the global economic conditions, the pace still remains considerably better than most,” Moore added.

Research by Proleads show hotel projects under construction across the GCC valued at more than $7 billion. Most are in the UAE ($4.4 billion) followed by Saudi Arabia ($1.2 billion), Qatar ($620 million), Bahrain ($490 million), Oman ($300 million) and Kuwait ($90 million).

Supporting the Proleads outlook, UK hotel real estate research company Lodging Econometrics has revealed that according to their research, the Middle East can expect 98 new hotels with 29,226 rooms to open in 2010 and 115 hotels with 33,765 rooms in 2011.

“Indeed although RevPar (Revenue per available room) rates have declined year-on-year in the Middle East to approximately $125, it compares favourably with RevPar figures of $81 and $55 in Europe and the Americas respectively, over the same period,” Moore added.

“With concerns about hotel oversupply, the re-examining of plans during the slowdown has been a healthy exercise,” she added. “An important factor going forward will be what happens in the global and regional economies to encourage people to travel and impact hotel occupancies.”

The Hotel Show is divided into four zones: Interiors & Design; Operating Equipment & Supplies; Security & Technology; and The Resort Experience, covering all things outdoor including furniture, accessories and design and includes Hotel Spa, an important sector with more than 60 per cent of all spa activity in the Middle East taking place in hotels. Alongside the show, are high level seminar programmes – The Seven Star Conference, now in its fifth year, and the Middle East Spa Summit.